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Matthews International Capital Fund Manager Jesper Madsen on how to profit from investments in China.
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Well my next guests -- just returned from China.
And it isn't concerned about a slowdown there he says what -- -- in the headlines the what you see on the ground are very different stories.
-- -- out of Fox Business exclusive.
Is yes for -- fund manager with Matthews international capital and you know all about China and so does Mathews you've been in this business for years.
What did you see in China yes -- that makes you believe that we should still be bullish on China as an investment.
Well on -- stress firstly at one when I'm say I'm less concerned is about the the ongoing entrepreneurial talent that we see in China the animal -- -- that let -- alive and and and kicking.
And so I spend some time couple weeks back and two cities outside of Beijing.
Suspense and time in -- -- and when -- these no further -- for no spirit.
And we saw that meeting with with small business owners and it's it's definitely.
And heartening to see that these are guys that -- you have to deal with high input costs.
The dealing with the it was an appreciating currency.
But then I'm moaning about it signs that they are trying to find out how to.
Really deploy the next the next capital they haven't had.
-- have a lot of our viewers and frankly lot of investors here in this country have always been.
And recently hit -- have been buying a lot of the Chinese ADRs the Chinese companies that trade here in the United States wrapped around.
A recent example of an IPO the did very well that was 2011.
What to tell our viewers about buying Chinese companies do not -- -- they can share with us.
Well asked of the strategies that I managed -- Matthews said they all income and dividend oriented.
So I had a had quite as strong bias -- was those kinds of companies.
And so friends is one that is a lot cap mega cap by by most -- More than 200 billion in market cap is China mobile's.
He had a company that is -- a little less than 4%.
And as of last comment had about 660.
Million subscribers.
Out of about one billion for the whole mock -- as the dominant carrier.
In China.
And it's been growing that dividend and around 8% in May not sound as -- as some of the Internet names that -- come out of China but.
That combination between almost 4% yield and 8% dividend growth.
In my book is is is valued factory in China -- has -- -- at the top as far as the CEO.
It goes but your bullish about that correct yes -- Law and in general we tend to see was some of these -- so he's.
His -- of musical chairs that some rotations that happen.
Quite regularly.
So again we we do see some of these changes in top management and that's one of the.
I guess drawbacks and benefits have elevated of being and invested with the company -- -- still predominately owned by the come.
And Taiwan's semiconductor and I'm glad with names and I think a lot of our viewers and -- -- seeing in Taiwan semiconductor.
That's not just hitting a new high -- do you think that we should really looking at names like -- -- do you think that we cherry pick kind of a new names the new emerging companies out of China.
So for -- Austin and -- how we manage the -- China dividend strategy.
Again it's a very specific strategy looking for companies that that can grow the dividends.
And is -- in the mix between both a lot caps to do discussing here that China mobile's their TS and -- of the world.
But also small caps and that's what's really interesting and intriguing about China in particular.
If you look at the Chinese market today we have about 63 billion paid out in dividends now.
If you go back to 9870%.
Of those dividends the companies that pay out those dividends would not even have been listed.
As this goes to show how quickly this market has it evolved.
Would you IPO activity and many of it coming from Hamas -- -- we actually we're finding opportunities across the whole capitalization spectrum some find.
And small and mid -- companies paying dividends.
Very early on because they have lots family ownership that is this interest that just like minority shareholders in extracting some value throughout time by the -- Yes -- -- from -- music -- tell you a map uses the name when it comes to the Asia Pacific region thank you yes -- Very interesting picks from you thank you.
